Banking indomitability: KRYSTALBANK works stably in wartime conditions

Access to financial services is an important tool for shaping the competitiveness of any country. Despite all the difficulties of today, KRYSTALBANK continues to actively develop, provide high-quality banking services and implement the strategy of expanding the network of branches throughout Ukraine.

Recently, the bank received the award “Bank that works stably and reliably in wartime conditions” within the framework of the XV ALL-UKRAINIAN COMPETITION “BANK OF THE YEAR – 2023” from the International Financial Club “BANKIR”.

We asked Leonid Hrebinskiy, chairman of the board of JSC KRYSTALBANK, how the bank works in the conditions of martial law, about new banking services, prospects and plans for the future.

Our goal is maximum access to financial services for all Ukrainians

– The Ukrainian banking system received huge challenges with the beginning of the destructive war launched by the Russian aggressor against our state. What operational efficiency has KRYSTALBANK maintained today?

– High. The bank’s net profit as of November 1 amounted to UAH 40.1 million, which indicates high profitability of assets and capital. As of November 1, 2023, the volume of assets was UAH 2.2 billion, which secured us the 43rd position among 65 banks of Ukraine.

Since the beginning of the year, regulatory capital has increased by 7.0% to UAH 383.6 million.

– What is your level of capitalization and credit rating?

– KRYSTALBANK has more than four times the capitalization reserve, compared to mandatory standards, and twice the average level of capital adequacy in the banking market: 45.7% with a standard of 10% and an average value on the market of 25.3%, and the adequacy of the core capital – 29.9% with a norm of 7% and an average value of 14.9%.

In addition, in September of this year, the rating agency “IBI-Rating” confirmed the long-term credit rating of KRYSTALBANK at the level of uaAA with a change in the forecast from “negative” to “in development” and the maximum reliability rating of bank deposits at the level of “5” (excellent reliability).

– Since the beginning of the full-scale Russian invasion of Ukraine, KRYSTALBANK has opened 17 new branches in different cities of the country. Not every bank can demonstrate such strong results.

– Our goal is maximum access to financial services and products for all Ukrainians.

Today, it depends on our joint efforts in which country we will live: a comfortable and financially inclusive one or one where a large part of the population will be outside the modern financial system of Ukraine.

Today KRYSTALBANK has 40 branches in 28 settlements of Ukraine and provides a full range of banking services to corporate clients and private individuals.

In the near future, the bank plans to open universal branches in Transcarpathia. In general, KRYSTALBANK plans to open up to 5 branches throughout Ukraine by the end of the year.

– Active digitization of the banking sector contributes to the fact that the number of traditional branches is gradually decreasing, but some customers want to come to bank branches. In your opinion, why?

– Physical branches are still very popular among Ukrainians, they are an important source of attracting new customers to banking institutions. Clients want direct communication and consultations.

Some of them feel more confident when being served by a live person than when communicating with a chatbot. According to statistics, now 26-28% of funds are raised online, and 72-74% – through branches. The numbers speak for themselves.

Maximum customer orientation at all times

– There are more than 60 banks in Ukraine. What are the advantages of working with your bank?

– Favorable tariffs, a wide selection of loan programs and prompt processing of documents.

Understanding the urgent need to support the economy of our country and the need of Ukrainians for quality housing, we resumed lending to private clients last year.

In particular, the program “From dreams to actions” for the purchase of real estate in the primary market, then “Loans for the purchase of real estate in the secondary market” were restored.

Today KRYSTALBANK offers individuals everything credit products: a loan for a new home, a home on the secondary market, a secured loan, a loan for a new car and a car with mileage, an overdraft and a new consumer loan – “Loan for everything”, which can be obtained both in cash and without cash.

– KRYSTALBANK also works with corporate clients. How did this line of business develop?

– Very active: since the beginning of the year, the volume of loans to corporate clients increased by 10.4% to UAH 519.3 million, which corresponds to 41st place on the Ukrainian market.

We lend to businesses, including unsecured overdrafts, mortgage-backed and secured business loans.

We are strengthening work with tender guarantees and guarantees fulfillment of obligations, we actively work in the direction of service of currency contracts.

Thanks to this, the client base is growing. Our strengths in servicing contracts are competitive rates and prompt processing of document packages.

– What new can you offer your corporate clients?

– A new remote banking for business and entrepreneurs with a convenient interface and wide functionality for our corporate clients is currently being developed.

For example, in the first delivery, there will be quick registration in the application using the KEP without a visit to the branch, SMS connection (OTP password) for entering the application and signing payments (additional security), etc.

– JSC “KRYSTALBANK“ became a member of the international money transfer system for individuals R360 (Great Britain).

– I would like to clarify that the system is represented in more than 50 countries of the world and has the highest level of transaction protection. The currency of transfers is euros, they are carried out online without opening an account (subject to compliance with the norms of the current legislation of Ukraine regarding the maximum amounts).

In this way, you can receive money 10 minutes after the transfer.

Credit policy: to be one step ahead

– How does the war affect the bank’s activities? What had to be changed?

– We can say with confidence that the bank’s activities were fully adapted to the state of war. The concept of a mortgage bank in a state of war has changed to a quick response to the urgent needs of customers.

Thus, since the beginning of the full-scale invasion, the bank has increased its loan portfolio under the “Auto Credit” program (purchase of new cars through car dealerships) by almost 3.5 times.

– Currently, the economy of Ukraine is recovering at a faster pace than the government previously predicted. All these factors will encourage the banking sector to actively develop. Is there a demand? real estate lending?

– The lending program “Secured by real estate” after the adaptation of the conditions in terms of the level of interest rates and the increase of the credit term (it is clear that some insecurity of potential customers in the stability of incomes in wartime dictated such an increase) is in demand with us and allows us to increase the credit portfolio.

The bank expects the renewal of the primary construction market and is ready to offer both an existing product and new lending terms for the purchase of property.

– “The executive power and the National Bank are making maximum efforts to stimulate the banking system to lend to the real sector in these difficult conditions“, – the First Deputy Prime Minister emphasized recently – Minister of Economy Yulia Svyridenko.

What can you say about your loan portfolio?

– The credit portfolio of clients has shown that we are reliable partners, despite difficult times.

The minimal level of overdue loans and prompt resolution of issues with borrowers regarding credit debt restructuring on favorable terms with an individual approach to each minimized both the bank’s probable losses from overdue payments and the financial difficulties of our clients.

The bank plans to continue improving lending programs in the future. It is about the renewal of programs for providing housing, targeted loans for household items that our clients need, participation in state programs for the restoration/provision of housing.

All this will be useful to Ukrainians in these difficult times.

– From the first days of the full-scale invasion of the Russian Federation into our country, KRYSTALBANK has been supporting the Armed Forces of Ukraine, directing its main efforts to support military hospitals.

– The bank offered clients a new deposit deposit “Let’s help together“. When it is opened, the client will automatically report to ZSU. In total, the bank provided 2.4 million hryvnias of charitable assistance.

In addition, our employees organized a collection and during the year purchased medical drugs for the treatment and support of wounded defenders for more than 700 thousand hryvnias.

KRYSTALBANK will continue to support the economy of Ukraine, as well as help save our military. After all, only together can we win such a long-awaited Victory.

From the editors: at the competition “XV – ALL-UKRAINIAN CONTEST “BANK OF THE YEAR – 2023” Leonid Hrebinsky received a personal award “For leadership in the banking sector named after V.P. Hetman”.

This is one of the most prestigious awards in the financial sphere of Ukraine, which is presented to the best bankers who have made a significant contribution to the development of the banking system of our country.